A cheap alternative to the car. Cycling may do well in a recession.
As well as being a cyclist, I also work as a part time Economics teacher. I write an Economics Blog for anyone who might be interested.
Talking to some friends who work in local bikes shops, the economic downturn seems not to have affected business so far. In a way, cycling is fairly immune from an economic dowturn, at least at the cheaper end of the market.
It is possible falling incomes may encourage people to buy a bike and cycle rather than pay for a bus pass or petrol for a car.
Rising petrol prices have also helped increase demand for bikes. Unfortunately, oil prices are now falling so this price incentive may prove to be temporary.
If the recession turns out to be serious, it will affect sales of top end bikes, but for most cycle shops, I would anticipate the recession would not be too damaging. If nothing else those working in bike shops can be grateful they are not estate agents.
P.S. I am taking part in a sponsored cycle ride to try and raise $700bn for ‘rich people on wall street’. Please give generously. If you have no spare cash, you could always consider remortgaging your house.
- $100 – could buy a round of drinks in a manhattan bar!
- £1,000 – could buy an assortment of junk bonds, previously with a value of $100,000!
- $10,000 could buy 0.1% of a top executives redundnacy payout!
hi Dave,
It is hard to know how cycling teams will be affected. But, I think it is true that the top range of the market will be adversely affected by downturn as people avoid ‘luxury items’
the recession is serious!
how will it impact on bike clubs built around sponsorship? many clubs/teams – you know the ones with X in their club names! – these non-traditional teams will suffer. there may well be an increase in cycling as a way of saving, but the retailers benefitting from any boom wont be traditional bike retailers.
discounters such as aldi,lidl, tesco et al will benefit from this market.